Meritor, Arvin Agree to Merge,
Tightening Auto-Parts Sector

Vehicle parts makers Meritor Automotive Inc. and Arvin Industries Inc. agreed to merge, creating a new company with $7.5 billion in sales and a market capitalization of about $1.5 billion.

The companies billed the transaction as a merger of equals. "The intent was for no one to receive a premium or a discount. It was an at-the-market deal," said Meritor's chief financial officer, Thomas A. Madden.